Correlation Between Golan Plastic and Victory Supermarket
Can any of the company-specific risk be diversified away by investing in both Golan Plastic and Victory Supermarket at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Golan Plastic and Victory Supermarket into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golan Plastic and Victory Supermarket Chain, you can compare the effects of market volatilities on Golan Plastic and Victory Supermarket and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Golan Plastic with a short position of Victory Supermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golan Plastic and Victory Supermarket.
Diversification Opportunities for Golan Plastic and Victory Supermarket
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golan and Victory is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Golan Plastic and Victory Supermarket Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Supermarket Chain and Golan Plastic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Golan Plastic are associated (or correlated) with Victory Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Supermarket Chain has no effect on the direction of Golan Plastic i.e., Golan Plastic and Victory Supermarket go up and down completely randomly.
Pair Corralation between Golan Plastic and Victory Supermarket
Assuming the 90 days trading horizon Golan Plastic is expected to generate 1.54 times more return on investment than Victory Supermarket. However, Golan Plastic is 1.54 times more volatile than Victory Supermarket Chain. It trades about 0.45 of its potential returns per unit of risk. Victory Supermarket Chain is currently generating about 0.29 per unit of risk. If you would invest 100,000 in Golan Plastic on September 4, 2024 and sell it today you would earn a total of 23,800 from holding Golan Plastic or generate 23.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golan Plastic vs. Victory Supermarket Chain
Performance |
| Timeline |
| Golan Plastic |
| Victory Supermarket Chain |
Golan Plastic and Victory Supermarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golan Plastic and Victory Supermarket
The main advantage of trading using opposite Golan Plastic and Victory Supermarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golan Plastic position performs unexpectedly, Victory Supermarket can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Victory Supermarket will offset losses from the drop in Victory Supermarket's long position.| Golan Plastic vs. EN Shoham Business | Golan Plastic vs. Accel Solutions Group | Golan Plastic vs. Mivtach Shamir | Golan Plastic vs. Rani Zim Shopping |
| Victory Supermarket vs. Shufersal | Victory Supermarket vs. Rami Levi | Victory Supermarket vs. Tiv Taam | Victory Supermarket vs. M Yochananof and |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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